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Expert: Job Creation Law Creates a Conducive Investment Climate


Jakarta – It is believed that the existence of the Job Creation Law can improve the Indonesian economy.

Socio-Employment Demography Expert from the National Research and Innovation Agency (BRIN), Nawawi, MA, Ph.D. said that the Job Creation Law is a way out of the industrial conflicts that have been occurring in Indonesia.

“This law is a solution for how we can create an investment and business climate whose aim will be to have a positive impact on various interests, including those of the government, employers and workers,” he explained.

Nawawi believes that the existence of pros and cons regarding the Job Creation Law is normal, but all parties must be able to create conditions that can create economic stability.

“If we continue to be in conflict, of course it will not be good in our economic context. “The investment climate is a very important condition when talking about employment economics,” he continued.

Furthermore, Nawawi said that a good investment climate would have an impact on increasing production, which in turn would impact economic improvement, job creation and increased economic growth.

“A good investment climate will increase production, which in the end will also have an impact on improving the economy, creating jobs, increasing economic growth, which means it will also have a positive impact on workers,” he said.

According to him, economic recovery requires economic stability and support from the Job Creation Law, which will create a conducive investment climate.

“The World Bank has highlighted the need for stable employment regulations, and it is hoped that the Job Creation Law will support this,” he concluded.

Meanwhile, Co-founder of the Young Intellectual Forum, Muhammad Sutisna, M.Si, believes that the issuance of the Job Creation Law is part of the structural reform of the Indonesian economy to avoid the trap of middle-income countries in the future.

“This step is the key to increasing the ability to master technology, encouraging innovation, strengthening business certainty, and creating a more conducive investment climate by improving the quality of the rules and regulations under it,” explained Sutisna.

Supporting the Job Creation Law, he added, is an important step to encourage Indonesia’s economic transformation because in the future the implementation of this legal product has the potential to increase investment, improve the business climate and create jobs.

“Implementation is ensured to go hand in hand with the interests of the community, environmental preservation and workers’ rights,” he said.

Apart from that, Sutisna further said that transparency, public participation and strict supervision are the keys to ensuring that the Job Creation Law can provide sustainable benefits for Indonesia.

Therefore, Sutisna believes that the role of all parties, including government, civil society and business, is very important in navigating the journey towards successful economic transformation through the implementation of the Job Creation Law.


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